Your Working Years Pay For Your Retirement Years
You will need about 70% of your pre-retirement income in retirement to maintain your standard of living, yet, for average earnings, Social Security benefits provide approximately 40% of that. The majority of retirement income will have to come from somewhere other than Social Security. From 1990 to 2012 the number of private industry workers getting pensions fell from 42% to 22%. The trend is unmistakable; workers have to support the bulk of their own retirement.
In order to support retirement, it is important to to set aside 10% of your income right off the top and budget the rest accordingly. A revised budget with retirement savings set aside breaks down as: taxes 19%, insurance 11%, transportation 17%, housing 27%, utilities 5%, personal 11% and retirement 10%.
The information presented here is the opinion of the author and may quickly become outdated and is subject to change without notice. All material presented in this article are compiled from sources believed to be reliable, however accuracy cannot be guaranteed. No person should make an investment decision in reliance on the information presented here.
The information presented here is distributed for education purposes only and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or participate in any particular trading strategy.
Performance data showing past performance results is no guarantee of future returns.